REcore Solutions Takes Legal Action Against Homes.com for Breach

REcore Solutions Takes Legal Action Against Homes.com

In a significant legal battle, REcore Solutions LLC, the provider of licensing services for the California Regional Multiple Listing Service, Inc., has initiated a lawsuit against Homes.com and its parent company, CoStar Group. The lawsuit comes amidst growing concerns related to a breach of contract that has left REcore and its partners no choice but to protect their interests vigorously.

REcore Solutions operates essential licensing systems tailored for multiple listing services (MLSs). These systems are designed to enhance access to and opportunities for utilizing MLS data effectively. By charging fees that recognize the contributions of real estate professionals, like buyer's agents and listing brokers, REcore aims to create a fair environment for all participants.

In alignment with principles laid out by the U.S. Department of Justice and the National Association of REALTORS (NAR), REcore does not impose fees on those MLS participants who contribute directly to the network's effectiveness. Instead, the fee structure is oriented towards entities that monetize MLS data without representing buyers or sellers.

Details of the Lawsuit Filed Against Homes.com

Over the past two years, representatives from Homes.com, following its acquisition by CoStar, promised to compensate REcore for access to MLS listing data. This commitment acknowledged the immense value that listing brokers and MLSs contribute to the industry. Despite these commitments, Homes.com later sought an IDX data feed, contradicting earlier representations that they would not act as a participating broker.

In January 2024, Homes.com executed an agreement with REcore, which entailed a specific fee structure for the use of MLS data. Homes.com was expected to pay a fee of approximately $2 for each MLS listing displayed on their platform. However, the company has not upheld its end of the agreement, leading to the present legal action after extensive negotiations failed.

Consequences for Homes.com Data Access

As a direct result of this lawsuit, REcore has announced plans to terminate the Homes.com and HomesPro data feeds that carry CRMLS listing records, starting November 1, 2025. Both REcore and the California Regional MLS (CRMLS) are firm in their commitment to ensuring that listing brokers maintain control over their contributions to the MLS.

Listing brokers wishing to send their CRMLS listing records to Homes.com can reach out to REcore to set up a Participant's Data Return feed. This service will be provided free of charge and without limitations on how Homes.com can use the data.

Commitment to Fair Compensation in MLS Data

The disappointment felt by both CRMLS and REcore is palpable, particularly regarding CoStar’s failure to honor financial commitments that were intended to benefit the listing brokers contributing data to Homes.com. Despite CoStar's substantial investments in marketing and promoting their services, they have not maintained the integrity of their promises to REcore.

REcore initially aimed to distribute its first payments to CRMLS listing brokers in 2025, but due to the breach of contract by Homes.com, these payments have now been postponed until 2026. Additionally, every expense incurred by REcore and CRMLS in defending their rights is a sum taken away from the brokers who rightfully deserve compensation for their valuable contributions to the MLS data pool.

Unity in Protecting MLS Data Integrity

Both CRMLS and REcore are resolute in their mission to defend the rights of listing brokers to receive fair compensation for their significant contributions. Even as CoStar generates significant revenue, REcore and CRMLS remain committed to preserving MLS data integrity and advocating for justice through the legal system.

About REcore Solutions LLC

REcore is recognized as a prominent provider of MLS software as a service (SaaS) and data licensing solutions. They offer customizable technologies that are specifically designed for MLSs and associations. Their product lineup, developed through collaboration with MLS leaders, includes innovative solutions such as the REcore SSO dashboard, the next-generation MLS data management platform REdatacore, and comprehensive data licensing tools.

About California Regional Multiple Listing Service (CRMLS)

California Regional MLS stands out as the leading subscriber-based MLS in the nation, dedicated to serving real estate professionals from a variety of associations, boards, and other MLS organizations. CRMLS prides itself on delivering relevant and valuable products and services to its users, reinforcing its position as a powerhouse in the industry.

Frequently Asked Questions

What led REcore Solutions to file a lawsuit against Homes.com?

REcore Solutions filed a lawsuit against Homes.com for breach of contract after the company failed to pay the agreed fees for MLS data access despite previous commitments.

What are the implications of the lawsuit for Homes.com?

The lawsuit may result in the termination of Homes.com’s access to CRMLS listing data, affecting their ability to provide accurate listings.

How does the fee structure work for MLS data usage?

REcore charges fees to entities that monetize MLS data without representing buyers or sellers, ensuring fair compensation for listing brokers who contribute data.

What steps can listing brokers take in light of this situation?

Listing brokers can contact REcore to establish a Participant’s Data Return feed to send their listing records to Homes.com, without incurring costs or restrictions.

What is REcore's commitment in this matter?

REcore, alongside CRMLS, is committed to protecting the rights and compensation of listing brokers, defending MLS data integrity, and seeking justice through legal channels.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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